 "The reliefs and concessions sought by JSW were part of the committee of creditors approved resolution plan")
JSW Steel, on Monday, announced that it has reached an in-principle agreement with Japan's JFE Steel to establish a 50:50 joint venture company to manufacture cold-rolled grain-oriented (CRGO) electrical steel in India.
In a regulatory filing, the company said, “the feasibility study has since been completed and both, JSW Steel and JFE Steel have in‐principle reached an agreement to establish a 50:50 joint venture company.”
“The JV shall be able to manufacture the entire range of CRGO products at its proposed facilities at Vijayanagar, Karnataka, India. This JV will be the first company to produce CRGO products with its entire chain of manufacturing processes in India,” JSW Steel said in statement.
The JV will contribute to the rapidly growing Indian demand, with its “Made in India” CRGO products based on JFE Steel’s energy efficient production technology developed through extensive R&D. The finalisation of the JV will be subject to execution of definitive agreements and necessary regulatory approvals, the company said in BSE filing.
JSW Steel and JFE Steel continue to enhance their alliance since they signed a comprehensive strategic collaboration agreement in 2009, followed by JFE Steel’s equity investment in JSW Steel.
“JSW Steel and JFE Steel have a technical collaboration with regards to automotive steel through which JSW Steel has developed a wide range of steel for critical auto end use applications. In 2012, JFE Steel entered into an agreement with JSW Steel to provide technology for the production of non‐grain oriented electrical steel products, which has enabled JSW to become India’s leading supplier in this field,” the company said.
“The JV would further strengthen JSW Steel’s position as India’s leading manufacturer of advanced steel products that lead to reduced CO2 emissions, and creating sustainable steel solutions,” said Jayant Acharya, Joint Managing Director & CEO, JSW Steel.
